Question

Sunspot Beverages, Ltd., of Fiji uses the weighted average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Materials Conversion 70% 40% Work in process, beginning Started into production Completed and transferred out Work in process, ending Units 102,000 486,000 476,000 112,000 75% 25% Work in process, beginning Cost added during June Materials Conversion $ 42,500 $ 15,600 $ 455,900 $ 332,160

Answer 1

1
	Materials	Conversion
Units completed and transferred out	476000	476000
Work in process, ending:
112000 X 75%	84000
112000 X 25%		28000
Equivalent units of production	560000	504000
2
	Materials	Conversion
Work in process, June 1	42500	15600
Cost added during June	455900	332160
Total costs	498400	347760
Divide by Equivalent units of production	560000	504000
Cost per Equivalent unit	0.89	0.69
3
	Materials	Conversion	Total
Work in process, ending units	84000	28000
X Cost per Equivalent unit	0.89	0.69
Cost of ending work in process inventory	74760	19320	94080
4
	Materials	Conversion	Total
Units completed and transferred out	476000	476000
X Cost per Equivalent unit	0.89	0.69
Cost of Units completed and transferred out	423640	328440	752080
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	58100
Cost added to production during the period	788060
Total Cost to be accounted for	846160
Cost accounted for as follows:
Cost of ending work in process inventory	94080
Cost of Units completed and transferred out	752080
Total Cost accounted for	846160